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Hi all, as we start this week with a bank holiday in Japan, the EUR/USD resumed it’s bearish momentum soon after the markets open.
After hitting a low of 1.4610, the currency pair is currently around 1.4640ish.
From our current chart, we can see how tempting it is to assume that the high of 17 Sep 09, 1.4766 was the top for this bull run.
Looking at our usual market clues, we can see that the S&P 500 suffered similar sentiments and is in the red zone now.
The MSCI World Index which includes a collection of stocks from developed countries is in the red too.
As we cannot presume that the currency pair will not make an attempt for 1.4766 again, i will be looking out for continued bearish momentum.
If bearish momentum develops, we may expect support at 1.4600, followed by a potential support at the previous upper trendline.
Any bullish momentum may need to deal with 18 Dec 08’s high of 1.4719 before further developments.
This week’s FOMC meeting may shed more clues.
You can visit my blog for more EUR/USD and forex articles.
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